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Indo Rama Q1 net up 133 pc

Our Bureau

NEW DELHI, July 12

INDO Rama Synthetics (India) Ltd (IRSL) has reported a 133.09 per cent increase in net profit for the quarter ended June 30, 2001 at Rs 19.16 crore as against a net profit of Rs 8.22 crore recorded in the same period during the previous year.

Sales of the company for the period under review increased by 8.13 per cent to Rs 518.83 crore (Rs 479.84 crore). This included export sales of Rs 143 crore for the three month period ended June 30, (Rs 161 crore during April-June 2000). Other income for the quarter stood at 1.90 crore (Rs 3.46 crore).

``Sales value increase has been achieved mainly on account of an increase in polyester volumes which went up from 79,106 tonnes during April-June 2000 to 86,673 tonnes during April-June 2001'', Mr O.P. Lohia, Managing Director, IRSL, told newspersons her e.

He also said that lower interest outgo and changes in sales policy have resulted in cost savings which has contributed to the better bottomline performance during the first quarter of the current fiscal. ``We have during the first quarter stopped our ear lier policy of offering discounts to prop up sales. It has been decided that we shall compete more on quality aspects than on price aspects'', Mr Lohia said.

While interest and finance charges for the quarter stood at Rs 36.80 crore (Rs 42.43 crore), depreciation charge (inclusive of deferred revenue expenditure written off) for the period under review stood at Rs 26.29 crore (Rs 25.98 crore). Other expenditu re for the three months period June 30, 2001 stood at Rs 58.48 crore (Rs 74.84 crore which included discounts offered on sales).

Meanwhile, Mr Lohia also said that IRSL plans to increase the price of partially oriented yarn (POY) by Rs 2 per kg effective July 16. Prices of polyester staple fibre (PSF) are also to be increased by Rs 0.50 per kg from the same date.

``We are expecting profits to be in three figures for the current fiscal. We hope to reward our shareholders this year'', Mr Lohia told Business Line, adding that the real impact of the recent decline in interest rates would be felt from the second quar ter of the current fiscal.

IRSL has long term outstanding of Rs 1,150 crore, with substantial portion of the long term debt being foreign currency borrowings, Mr Lohia pointed out.